If the Fed is audited, what might we find that they are doing which would be bad?

show me one specific, representative equation

 

First I doubt you'll find in wrong doing if you audited the fed. You may find things you don't like but you won't find anything given the Feds audit that is illegal or immoral.

2nd the fed isn't the problem.

 

that's right, congress is responsible for spending and the federal debt

 

You don't need to answer those questions for each equation individually, if that's what you are concerned about. There is a mathematical term that describes the class of equations that each of the equations in FRB/US belongs to. The term has to do with the fact that the expression defines values of the modeled variable for some inputs in terms of the values of the same expression for other inputs. Similarly, they were all determined using the same econometric method.

Since you looked over it, you should have come across some equations. Any one of those will do.

 

No, I am sure you would find several things that are immoral. The fed is made up of banks afterall, and banks have always been known to do some things that are considered by most people to be immoral. Illegal is another thing. As I said before, the fed is in bed with politicians, and the laws have been worked to protect them.

 

ok, i just spoke with an associate who's a professional economist, dba in finance (1969) and retired econ professor

we'd like to know what relationship this model demonstrates and exactly what it has to do with the fed's monetary policy

 

What does any of this have to do with what I asked? The description of the model is contained in the link. You claimed that you read it.

Can you answer the question or not?

 

what does what you asked have to do with the fed's monetary policy?

 

I guess you lied about reading it.

FRB/US is a model of the macroeconomy which the Fed uses to model the evolution of things like inflation, growth, potential output, exchange rates, etc. It was developed in-house by their own analysts. Consequently, they use it to make forecasts, and as such it informs monetary policy.

Not difficult to comprehend for someone with an advanced econ degree.

 

it seems more like you can't read

i said i looked it over

show me where it's been used by the fed and what the result was

the economist i spoke with says you don't know what you're talking about

 

A one time audit, that did not fully audit the FED's internal accounting.

Oh BTW, what was found in the GAO audit?

Was everything as we thought it was?

Lastly though, you have no issue with that kind of GAO audit being a yearly audit correct?

 

So basically the information gathered and the actions taken could be used for good or greed. Exactly why these 'human beings' need to be kept on the shortest leash possible.

 

I'm not "now conceding" anything. I never claimed I had evidence that she ever said such a thing.

More bull(*)(*)(*)(*) Iriemon red herrings.

It's not a "baseless, bull(*)(*)(*)(*) accusation" at all, nor were you spot on. Fully auditing the Fed decreases the likelihood of corruption. Anybody who opposes that clearly doesn't have a problem with increasing the probability of government corruption occurring.

Anybody who is opposed to government corruption always welcome ways to reduce it.

 

No it's not. "Fully" auditing means that auditors are not prevented by law from auditing anything, as they currently are. This is just common sense.

Sure I did. I proved that the Fed is not fully audited:

http://www.gpo.gov/fdsys/pkg/USCODE-2011-title31/html/USCODE-2011-title31-subtitleI-chap7.htm

I'm not going to rely on your baseless say-so as proof. Others can decide for themselves.

 

Sure they did. As their report which you did not read points out, the Fed's accounting is fully audited every year by several different independent private and government entities.

Try reading it. I posted several things they found.

Pretty much.

The GAO audits various parts of the Fed's operations every year. Why would they need to do an audit on their emergency responses to the financial crisis every year?

 

That isn't what fully audit means at all. Its just a made up term that is used after Paulian claimed the Fed was never audited was blown out of the water by proof the fed is audited every year by Deloitte and Touche, the GAO, the OIG, as well as its own internal audit committee.

That isn't an audit. that is a political smear.

 

Nonsense. If there are legal restrictions on what can be audited, then the Fed is not fully audited, now is it?

Citing US Code to prove you wrong is not "political smear". The only thing that is political smear is your political agenda against folks who stand for accountability and transparency in government by wanting the Fed to be fully audited.

 

That is not an audit by anyone. It is just something the anti-Fed folks made up.

The Fed is fully audited and is the more heavily audited than any other entity in the world, that I am aware of.

That is the purpose of the bill by its sponsor, Ron "End the Fed" Paul whose stated goal is to eliminate the Fed.

 

What are you talking about?

The Fed is not fully audited, as I've already proven several times in the thread.

Good for you. So what?

The purpose of the bill is to eliminate the legal restrictions on what can be audited. There's no political smear about that.

 

The "economist you spoke with" is fake, just like your advanced econ degree.

Here is a paper, from the Federal Reserve, that shows the model is used in formulating monetary policy.

http://www.federalreserve.gov/pubs/feds/1997/199729/199729pap.pdf

Large-scale macroeconometric models have been used for forecasting and quantitative policy
and macroeconomic analysis at the Federal Reserve Board for the past 30 years.1 Model
design and development efforts at the Fed have been divided into two complementary research
programs. One project, undertaken in the Division of Research and Statistics, focuses
on the U.S. economy, and the other, residing in the Division of International Finance,
is oriented toward the global economy. For some applications, the macro models maintained
by the two divisions are combined to form a single world model. Page 1

Among academics, interest in large-scale macroeconomic models started to diminish in the
1970's, and subsequently a large gulf emerged between applied macroeconomics as practiced
by academics and that contained in large-scale models. The basic underpinnings of the
traditional IS/LM/Phillips curve model were challenged on a number of fronts, including
identification, treatment of expectations, and econometric methodology. This led to a fundamental
overhaul of both the MPS and MCM models, culminating in a set of replacement
models—FRB/US, FRB/MCM, and the combined FRB/WORLD. From the beginning, the
new models were designed to incorporate explicit specifications of expectation formation
and intertemporal decision making. In this way, the criticisms of the first-generation models
were at least partially addressed. Page 7

Projects to develop a new pair of macroeconomic models were initiated in the early 1990's.
Work on the successor to MPS started in 1991, while development of a new version of the
MCM began in 1993. FRB/US and FRB/MCM officially replaced the earlier generation of
models in 1996, and a version which links the foreign country models of FRB/MCM with
FRB/US, called FRB/WORLD, is now the main policy model at the Board. FRB/US is
also used for short-run forecasting. FRB/WORLD contains over 250 behavioral equations,
of which 40 describe the U.S. economy and the rest describe the 11 other countries and
regions. Page 9

Also, here is Fed Vice-Chairman Janet Yellen describing how the model is used in analyzing policy in a recent speech.

http://www.businessinsider.com/fed-remittances-to-treasury-to-decline-2013-3


Focusing only on the ebb and flow of the Federal Reserve's remittances to the Treasury, however, is not, in my view, the appropriate way to evaluate the effect of these purchases on the government's finances. More germane is the overall effect of the program on federal finances. If the purchases provide even a modest boost to economic activity, increased tax payments would swamp any reduction in remittances. By depressing longer-term interest rates, the purchases also hold down the Treasury's debt service costs.

These effects can be quantified through simulations of the Board's FRB/US model. In the simulation I described earlier, a hypothetical program involving $500 billion of asset purchases would reduce the ratio of federal debt to gross domestic product (GDP) by about 1.5 percentage points by late 2018. The lower debt-to-GDP ratio mainly reflects stronger tax revenue as a result of more-robust economic activity


You are a laughingstock and a fraud.

 

so you'd be ok with auditing information that could affect national security or inject politics into fed decisions?


How the Federal Reserve Is Audited

All Federal Reserve Banks and branches are audited and examined regularly. The scope and frequency of audits are based on the specific risk factors in each Bank's operations.

Internal audits involve verification of assets, liabilities, and items held in custody.

Auditors evaluate the adequacy of internal controls and compliance with prescribed procedures. Major automated systems also are checked for security and effectiveness.

Periodic Reviews and Examinations

All Federal Reserve Banks and branches, like commercial depository institutions, are audited and examined regularly.

Internal audits are conducted by a permanent audit staff at each Reserve Bank. Each audit staff is headed by a general auditor who reports directly to the Bank's board of directors. In addition, a private CPA firm conducts an annual examination of each Reserve Bank and its branches on behalf of the Federal Reserve Board. External audits were instituted in recent years in place of annual examinations by the Board of Governors to ensure total independence in this process.

Operations at each Federal Reserve Bank also are subject to review by the Government Accountability Office (GAO), the audit arm of the U.S. Congress. However, GAO auditors are restricted by law from reviewing monetary policy operations and transactions carried out by the Federal Reserve on behalf of foreign central banks. This restriction was imposed by Congress to assure the independence of the Federal Reserve from political influence.

The Scope of Audits

The scope and frequency of audits are based on the specific risk factors inherent in each Bank's operations, including the nature of the activities it conducts, the prevailing level of controls surrounding these activities, and the quality and experience of the individuals assigned to the operation.

Internal audits at each Reserve Bank involve verification of assets, liabilities, and items held in custody. Auditors check both the physical presence of these items and the timely and accurate reporting of their movement. An evaluation of the adequacy of controls throughout the Bank and of compliance with prescribed procedures also is done. Audits are performed periodically in order to determine if the auditors' perceptions of prevailing risk levels and operating conditions since the last review remain valid. Periodic audits also help to determine whether previously identified problems and issues were adequately addressed and remedied, and to ascertain whether new problems or issues have emerged.

Although auditing procedures differ among the 12 Reserve Banks, their emphases are broadly similar. At the Federal Reserve Bank of New York, the audit staff reviews the cash, check, fiscal, electronic payments, and accounting areas, and all of the service and professional operations (which include legal, bank supervision and regulation, and research and statistics). It also audits centralized electronic data processing operations and automated systems under development. These audits consist of reviews of the Bank's data centers, with primary emphasis on environmental software products, including data base systems, operating systems, and data communications systems. Auditors evaluate the strength of internal controls and security of each software product, as well as the procedures and controls put in place by the organizational unit responsible for it. An auditor at the Buffalo Branch reviews activities there.

Audits of automated systems under development similarly concentrate on the adequacy of controls and security. These audits are intended to ensure that appropriate checks and balances are in place for each automated processing operation. Audit teams check the accuracy of records pertaining to transactions that flow through the system and certify that systems under development are fully and adequately tested before being placed into production.

Together with two other departments of the Bank, the audit staff controls activities in the Bank's gold vault, which stores about one-quarter of the world's official gold reserves. Auditors monitor all gold transactions, both deposits and withdrawals, and independently verify accounting records and balances pertaining to gold held in custody by the Bank.

July 2012

http://www.newyorkfed.org/aboutthefed/fedpoint/fed35.html

 

Auditing information wouldn't affect national security. That is just fear-mongering bull(*)(*)(*)(*) that you made up.

The Fed is not politically independent, that is more left-wing propaganda. The B.O.G. is directly appointed by the President, and thus are always subject to political pressure.

 

Some people have a funny way of defining terms such as "immoral".
Some people define "legal" as "anything you can get away with".

It makes no sense to argue with such people about what is illegal, immoral, or merely unethical.

What that ultimately report to after they have exhausted their supply of "plausible explanations" is simple lying.

Of course, people who lie knowingly and often, do not care whether lying is immoral or unethical. All they care about is whether their lies are effective in diverting suspicions from themselves and stopping inquisitors.

You can see them doing this in there ongoing effort to prevent the 9/11 dyke from bursting. Since there are some very wealthy heads that might roll if this ever happens, it's understandable that they will stop at nothing. After all, murder was no impediment for them from the start.

I don't expect they will ever admit to anything. Some of them might if you water boarded them 183 times, but who is in a position to do that?

http://www.youtube.com/watch?feature=player_embedded&v=iYZM58dulPE#!

[video=youtube;iYZM58dulPE]http://www.youtube.com/watch?feature=player_embedded&v=iYZM58dulPE#![/video]

 

Uh. I don't know about that. Remember when they told us that revealing the computer program for the NIST simulation and things like that would jeopardize national security. You know, like what was discovered about those Mossad agents they caught messing around and celebrating in NYC on 9/11 with vans full of explosives.

Why, if the Fed was audited, it might even cause a severe economic crisis. A lot of banks and "too big to fail" institutions might need bailing out as a result. Hyperinflation might start creeping faster and faster. The national debt might go through the roof. Perish the thought.

Better yet, just perish the Federal Reserve.

 

it only make sense to keep gridlock politics out of our central bank

congress is solely responsible for the country's national debt

why would you want congress running monetary policy?

bernanke explains independence in this video at 6:10

[video=youtube;t6EpC8JckRs]http://www.youtube.com/watch?v=t6EpC8JckRs[/video]

that video was debunked long ago